UK-based online fast fashion retailer ASOS has reported total revenue of £858.9m ($1.08bn) in the third quarter (Q3) of fiscal year (FY) 2023, down 14% compared to the corresponding period in FY22.

In the year to date, the revenue of ASOS declined by 9% to £2.7bn.

Sales in the UK dropped 15% to £370.3m in Q3 FY23 while in the European Union and the US, sales dropped 8% and 21% respectively.

During the quarter ending 31 May 2023, ASOS’ adjusted earnings before interest and taxes (EBIT) rose by more than £20m compared to the prior year period.

The improvement in profitability of underperforming brands and geographies raised the retailer’s profit per order by more than 30% versus last year.

Its adjusted gross margin increased 350 basis points (bps) over the quarter.

The company’s number of active customers fell to 0.8 million following the retailer’s continued focus on improving the profitability of sales over the pursuit of growth.

ASOS chief executive officer José Antonio Ramos Calamonte said: "We continue to focus on making ASOS the best possible destination for our fashion-loving customers. At the same time, we are delivering on our plan to turn the business around: to right-size our stock; to generate cash; to reduce our net debt; and to structurally improve our profitability.

“I am confident in the direction we are going, we have restored profitability in the period and made good progress in clearing through our inventory to generate cash. We retain ample balance sheet flexibility and reiterate our expectations for improved profitability, cash generation and reduction in net debt in H2 FY23 and beyond."

The British daily newspaper the Times reported that Earlier this month, ASOS secured a takeover bid from Turkish online retailer Trendyol.